Dow Today: Kraft Foods (KFT) Lower

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading down 34.0 points (-0.3%) at 13,545 as of Monday, Sep 24, 2012, 1:34 p.m. ET. During this time, 302.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 578.7 million. The NYSE advances/declines ratio sits at 1,144 issues advancing vs. 1,791 declining with 126 unchanged.
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Holding back the Dow today is Kraft Foods (Nasdaq: KFT), which is lagging the broader Dow index with a 27-cent decline (-0.7%) bringing the stock to $41.50. This single loss is lowering the Dow Jones Industrial Average by 2.04 points or roughly accounting for 6% of the Dow's overall loss. Volume for Kraft Foods currently sits at 8.7 million shares traded vs. an average daily trading volume of 12.6 million shares.

Kraft Foods has a market cap of $73.83 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 11.3% year to date as of Friday's close. The stock's dividend yield sits at 2.8%.

Kraft Foods Inc., together with its subsidiaries, manufactures and markets packaged food products worldwide. The company has a P/E ratio of 20.7, above the average food & beverage industry P/E ratio of 20.5 and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Kraft Foods as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, increase in net income, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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